179 Might Be Your Lucky Number
If you’re a business owner who needs or wants to purchase additional business equipment, machinery, vehicles, or computers to grow your business, increase efficiency, and take advantage of favorable IRS tax codes, Section 179 is welcome news.
What Is Section 179 And Why You Should Care?
Section 179 of the IRS tax code was created by Congress to stimulate US economic growth by incentivizing and rewarding businesses that purchase business equipment. Section 179 is an immediate expense deduction on depreciable business equipment that most businesses can use to reduce tax liability and take an immediate tax deduction.
Key Takeaways for Section 179
No waiting. Your business may take an immediate tax deduction for business-related, depreciable assets such as business machinery, equipment, software, and vehicles.
Section 179 allows a maximum deduction of $1,080,000.00 and a value of the property purchased up to $2,700,000.00 for the 2022 tax year.
A business can dramatically reduce its current tax liability and not wait to depreciate the assets and take the tax deductions over a series of years. Most enterprises prefer taking these deductions now and having more working capital on hand.
All types of businesses within specified limits, from small to large, allow a business to expense the cost of new and used qualified property (equipment) in the tax year the assets were placed in service.
Section 179 contains some limitations. The income limitation bars a taxpayer (business) from claiming an allowance that is greater than its taxable income (wages and salaries) from the active conduct of a trade or business.
Section 179 applies to equipment purchased outright or finances, and the total purchase price amount is eligible for the deduction.
A Real World Example of Section 179
Let’s say you’re a trucking business and need to add a new, state-of-the-art long-haul, sixteen-wheeler to your fleet, but you’ve been putting it off. With Section 179, you could purchase that truck this year, put it into service, take the full deduction in 2022, and not wait for as much as five years to take those deductions incrementally.
How Can Your Business Take Advantage of Section 179?
If your business needs new business machinery, a new fleet of business vehicles, the latest in software, and new computers, now is the time to make those purchases, increase your cash flow, ramp up your productivity, and take advantage of the tax code.
What could your business do with a new truck, farming equipment, imaging machine, new computers, the latest software, etc.? We know your business cannot get to the next level without these capital improvements, so we’re here to help.
How Can Coastal Kapital Help Me Get That New Business Equipment?
Coastal Kapital, a leader in same-day business loans, equipment purchasing, and flexible vendor financing, can help you, even when other companies have said no. Many businesses believe that their past credit scores or hardships make them impossible to help. Not with Coastal Kapital, we find a way to achieve your goals and get you what you need.
What Kinds of Equipment Can Coastal Kapital Help Me Acquire?
We have helped companies just like you finance and acquire the following:
- Excavators and earth-moving equipment
- Dump trucks
- Farm machinery–combines, seeders, balers, plows, and more
- Light towers
- CNC machine tools
- Bucket trucks
- Street sweepers
- Restaurant equipment–refrigerators, stoves, POS equipment, freezers, bar equipment
- Medical equipment, including MRI, lasers, and X-Ray machines
What Kind Of Companies Does Coastal Kapital Serve?
Coastal Kapital helps companies of all types, but we specialize in assisting companies in the agriculture, medical, trucking, transportation, restaurant, and landscaping spaces. We help you obtain the SBA loans, microloans, working capital, and equipment financing needed to start, operate, or expand your businesses.
Coastal Kapital is different. When other companies only see a credit score and drown you in mountains of paperwork, we try to simplify the process with one-page applications, no hard pulls on your credit. In many cases, we can offer fast and easy same-day funding.
Whether your medical office needs a new imaging machine, your trucking company needs a new truck, or your restaurant needs new refrigeration and an equipment upgrade, Coastal Kapital can help. We measure our success by your success, so how can we help you grow and get the equipment and working capital you need today?
With our great business financing solutions and the Section 179 tax deduction, 2022 can be your year to grow, make the capital equipment expenditures you need, and the perfect time to take advantage of this deduction and tax credit.